Two Alameda County cities — Emeryville and Hayward — are asking voters to approve new business tax measures on the ballot, and both were ahead in early returns Tuesday.
The Emeryville City Council voted unanimously in July to place Measure BB on the ballot to “modernize” the city’s 42-year-old business license tax system.
Measure BB, which requires a simple majority vote to pass, was ahead with about 90% of the vote in early returns posted by the Alameda County Registrar of Voters Office on Tuesday night.
Hayward’s Measure CC is also being billed as a tax modernization proposal. It was also placed on the ballot by a unanimous vote of its City Council and requires a simple majority vote to pass.
It was ahead in early returns with about 65% of the vote.
If approved, Measure CC will be the first update to the city’s business license tax since 1978.
The measure is estimated to raise an additional $12 million a year for the city’s general fund by setting a minimum tax of $60 and rates from 30 cents to $3.75 per $1,000 of gross receipts, with higher rates for higher-grossing businesses.
Currently, the city brings in about $3.7 million a year in business taxes.
The Yes on Measure CC website lists several endorsements, including U.S. Rep. Aisha Wahab, D-Hayward, Alameda County Supervisor Elisa Marquez and Hayward Mayor Mark Salinas.
Currently, Emeryville’s tax code contains 56 business categories, most of which pay a flat-rate tax or pay a rate calculated by using the number of employees, days of operation or the number of vehicles or some other asset used by the business.
Additionally, a tax rate of 0.1% of gross receipts applies to any business that’s not in any particular category.
Measure BB would change all that by, first, revising and reducing the number of business categories to just seven — General Commerce/Retail, Services, Professional and Advanced, Contractor, Real Property Rental, Utility, and Unclassified, according to information posted on the city’s website.
Secondly, it would adjust the tax rate by category, so businesses in the General Commerce/Retail and Utility categories would pay an annual tax of 0.1% of gross receipts, while those in Services, Contractor and Unclassified categories would pay 0.3%, and Real Property Rental and Professional and Advanced-type businesses would pay 0.4%.
It would also increase the maximum tax a business could pay from $300,000 to $800,000.
The tax rates for cannabis businesses, massage parlors and card rooms would not change. Also, small businesses with annual gross receipts of $100,000 or less would only pay $25.
The city currently takes in about $6 million to $7 million a year in business taxes. If approved by a simple majority vote, it’s estimated that Measure BB would double that, according to an analysis by the League of Women Voters, which endorsed the proposal.
The tax revenue would be put in the city’s general fund and could be spent on programs and services that benefit public safety, seniors and youth, road repair and parks, among other things.
If approved, both measures will be effective starting Jan. 1, 2027.
